Granger Ford – Trade in Guide

[Granger Ford]

I have been asked this question numerous times, so I decided to make a post all its own, so it does not get lost in the thread jungle.

I will be using 3 scenarios as they have played out here on the Forum.

For the base line I will be using a trade in that has:

• KBB retail value of $12,500
• KBB trade value of $10,000
• a wholesale (ACV) of $8,500

For the baseline vehicle I will use the Ranger: attached invoice.

• $45,115 - MSRP – window sticker
• $43,304 - Invoice
• $43,406 - X-Plan

• Dealer A - Full retail MSRP no discounts
• Dealer B - X Plan pricing
• Dealer C - Granger Ford example
  • $1000 under invoice

	Dealer A​	Dealer C​	Dealer B​
		* $1,000 under invoice​
Sale Price	45,115​	42,304​	43,406​	​
Trade "value"	10,500​	8,500​	8,500​	​
Trade Difference	34,615​	33,804​	34,906​	​

As you can see in the example (simplistic for sure) that your main concern should not be the trade in “value” but the trade difference as that is what you pay for the vehicle less your trade in..

To equal Dealer C’s price:

• Dealer A would need to “show” a trade value of $11,311 for the same deal as Dealer C
• Dealer B would need to "show" a trade value of $9,602 for the same deal as Dealer C

	Dealer A​	Dealer C​	Dealer B​
		* $1,000 under invoice​
Sale Price	45,115​	42,304​	43,406​
Trade "value"	11,311​	8,500​	9,602​
Trade Difference	33,804​	33,804​	33,804​

Therefore, I say that there are 2 transaction when trading in a vehicle and buying another.

We are selling you one and you are selling us one...

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[Roger350]

Albert, I have a question about trade-in value for vehicles that are obviously auction bound, and no dealer would likely recondition and sell on their used car lot. How much effort, and more importantly money should one put into reconditioning the vehicle before taking it to be appraised?

I ask because my trade-in is a 2007 Chevy Tahoe 4x4. It probably has 200k miles on it, but I can't get the exact miles because that small LED screen is burnt out. The truck looks 13+ years old, but isn't a complete piece of trash. Paint is mostly good except door dings, interior upholstery has some tears in the cloth, but the tires are shot to the point that I'm waiting for a build date to see if I'm going to replace them or just drive extra cautious in the rain.

I'll probably end up putting some really cheap Walmart no-name tires on it, but I could do used tires instead to save some money.

I could buy some seat covers to cover the torn upholstery.

And for 200 I could have the LED screen fixed.

In the end though, it is still a 13 year old truck with 200k miles on it, and it is goin off to an auction, so does spending any money on it make sense? I know I won't get what I pay out of an increased trade value, but just wondering if some of these things could make a difference?

I'll be going to CarMax for an appraisal, and I have had decent luck with them not low-balling me on previous trade values, and my Ford Dealer has agreed in writing to accept their value.

Sorry for the long question, no sweat if you don't have time to consider something that is so off topic from the 2021 hype.

Thanks,
Roger

 

[Granger Ford]

**

Albert, I have a question about trade-in value for vehicles that are obviously auction bound, and no dealer would likely recondition and sell on their used car lot. How much effort, and more importantly money should one put into reconditioning the vehicle before taking it to be appraised?

None - example - we do not look at the dirty vehicle needing tires any different that a clean one needing tires... ​

​

If it is a K9 going to auction then that is its fate... ​

​

We will send it through detail and sell it at auction...​

​

Detail for auction cost us 50 to 75 depending on the size of the vehicle.​

I ask because my trade-in is a 2007 Chevy Tahoe 4x4. It probably has 200k miles on it, but I can't get the exact miles because that small LED screen is burnt out. The truck looks 13+ years old, but isn't a complete piece of trash. Paint is mostly good except door dings, interior upholstery has some tears in the cloth, but the tires are shot to the point that I'm waiting for a build date to see if I'm going to replace them or just drive extra cautious in the rain.

I'll probably end up putting some really cheap Walmart no-name tires on it, but I could do used tires instead to save some money.

That would be the best choice for your safety's sake and will not deduct for tires...​

​

We can buy them cheap but a wholesale will not get new tires unless they do not hold air...​

I could buy some seat covers to cover the torn upholstery.

Dont waste your money if dealers see seat covers we expect the upholstery to be torn up...​

And for 200 I could have the LED screen fixed.

Again with 200k on it you will not get that back we can sell them at auction with unknown miles and some other independent dealer may see it thinking low to mid 100's for miles and pay a bit for it...​

In the end though, it is still a 13 year old truck with 200k miles on it, and it is goin off to an auction, so does spending any money on it make sense? I know I won't get what I pay out of an increased trade value, but just wondering if some of these things could make a difference?

I'll be going to CarMax for an appraisal, and I have had decent luck with them not low-balling me on previous trade values, and my Ford Dealer has agreed in writing to accept their value.

Sorry for the long question, no sweat if you don't have time to consider something that is so off topic from the 2021 hype.

Not a problem just here to help as I can, and I would suggest again to just pull out the large items of trash run a vacuum in it (15-20 min max) and maybe rinse it off...that is all I would do for an auction vehicle...​

 

[Roger350]

Thank you for the info! That saves me some time and money.

 

[Granger Ford]

Thank you for the info! That saves me some time and money.

Indeed, my father in law always put new tires (usually expensive) prior to trading because he was told by someone at a dealership many years before that dealerships charge 2 to 3 times the price if the tires are bad...

I have done this for 32 years now and bidding vehicles at 2 dealership have never thought of that, as we would put "economy" tires on older trade ins...

 

[Wolfpackfx4]

So how does the pricing work for changes between now and arrival? F150 has my trade in around ~35k on NADA, if I sign the plan tomorrow, what if the value or the trade changes between now and arrival? Or is valueing trade on ordering a fruitless exercise ? Thanks.

 

[daemonic3]

So how does the pricing work for changes between now and arrival? F150 has my trade in around ~35k on NADA, if I sign the plan tomorrow, what if the value or the trade changes between now and arrival? Or is valueing trade on ordering a fruitless exercise ? Thanks.

My dealer said there is no way to lock in trade as the current trade value is extremely high due to low inventory, and we likely won't get that much when new trucks finally arrive. It made sense to me but I need my truck until I get the new one. I have a target number I need them to hit so my gap to cover is manageable and if they can't then I will have to do independent sale.

 

[Wolfpackfx4]

My dealer said there is no way to lock in trade as the current trade value is extremely high due to low inventory, and we likely won't get that much when new trucks finally arrive. It made sense to me but I need my truck until I get the new one. I have a target number I need them to hit so my gap to cover is manageable and if they can't then I will have to do independent sale.

Yeah I figured, my issue would arise is if it dropped $5-10k in trade in value or something like that.

 

[05RubiconLJ]

If you read through some of the post on this site, several members have already turned over their vehicles to the dealer they ordered their new trucks from. I have a Jeep I could drive, if the dealer wanted my Tacoma and made me a good deal, but I have also had a dealership offer me a demonstrator to drive while I waited for my new truck to arrive. I think dealers are starving for used trucks right now, so the dealer you order from may try to work a deal that gets your used truck on their lot right now.

 

[goatlord99]

I asked the dealer if they wanted my old dodge dakota with 170K miles...he was like 'nah, you just hold on to that for now'

 

[Granger Ford]

So how does the pricing work for changes between now and arrival? F150 has my trade in around ~35k on NADA, if I sign the plan tomorrow, what if the value or the trade changes between now and arrival? Or is valueing trade on ordering a fruitless exercise ? Thanks.

That is dealer dependent we can bid the vehicles when we take orders on them as we do our best to guess the market in a couple of months...

Right now used vehicles are at a premium and will stabilize in time...

The beauty of the bid is at least you have a firm number on the trade in and you can sell it privately prior to the truck arriving for you to deliver...

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